SINGAPORE (Yosefardi) – SGX Main Board listed ISDN Holdings Limited, an integrated engineering solutions provider for diverse industries, has charted a new milestone in its planned diversification into the energy sector.
ISDN has proposed to acquire equity stakes in two Indonesian energyrelated companies; 40.8% and 80.0% ownership in PT Prisma Karun Energy and PT Potensia Tomini Energi respectively, allowing the Group a valuable foothold in the country’s fast expanding energy sector.
PT Prisma Karun Energy has to date inked a power purchase agreement (PPA) with Indonesia’s staterun power distribution company, PLN (Perusahaan Listrik Negara) to develop a mini hydropower plant in South Sulawesi while PT Potensia Tomini Energi is in the process of signing a similar agreement in Central Sulawesi. The combined installed capacity of the three power plants is expected to be 18 megawatt (MW).
Based on the feasibility study conducted by PT AECOM* Indonesia in March 2013 on the South Sulawesi mini hydropower plant that PT Prisma Karun Energy plans to develop, the 10 MW station is expected to produce approximately annual energy output of 59 GWh. Based on the PPA signed by PT Prisma Karun Energy with PLN, the yearly revenue may range between US$4 to 5 million over the tariff of IDR 787 or US$0.08 per KWh .
Construction is expected to commence early next year and is expected to last 18-24 months. The first income stream is expected to flow in after full operations commences.